In these challenging times, standing out from your competition
is more critical than ever. That's why thousands of small
companies are investing time and money to improve their
manufacturing processes so they can meet what are known as
"ISO 9000" standards. ("Iso" means
"equal" in Greek.)

The standards, established to encourage quality management and
manufacturing processes, are based in part on standards set by the
U.S. Department of Defense and international military organizations
for defense contractors. The International Organization for
Standardization in Switzerland publishes hundreds of standards for
just about every product made worldwide, according to ISO
experts.

Many big companies and prime government contractors prefer to do
business with ISO-certified manufacturing companies, according to
Charlie Scalies, president of Source4Quality.com, a consulting firm
that helps companies prepare to meet the standards and apply for
ISO certification. There are several companies authorized to issue
the actual certificates. "We are talking about process
management--that's what it's all about," said Scalies,
a former contract manager for Litton Industries. "You design
your manufacturing system so the process is seamless and everything
is trackable."

Scalies likes to compare meeting ISO standards to the adventures
experienced by the characters in The Wizard of Oz. "You
must have qualified and trained people to make sure the Yellow
Brick Road is built right to get you to that big green thing called
Emerald City," he said.

Scalies works with many small clients to prepare them for the
certification process, which can take months and cost thousands of
dollars, depending on what equipment and systems are needed to
improve quality. Scalies also trains internal auditors to make sure
companies continue meeting the quality standards necessary to keep
their ISO certification. "We bring a lot more to the table
with ISO certification and new equipment," said Stephen Reh,
president of Rehtek Machine Co. in Passaic, New Jersey. Reh hired
Scalies to improve Rehtek's manufacturing processes so the
company could be ISO-certified last year.

Reh said he spent about $30,000 to upgrade equipment and
computerize operations at his 12-employee contract manufacturing
company. "The employees embraced the changes because we set
procedures that streamlined our manufacturing process, and
everything was done according to detailed instructions," he
said. Reh, who received a federal matching grant designed to help
small firms improve their manufacturing operations, said the ISO
certification process "transformed the business from a little
job shop to a contract production facility."

"Everything is traceable from when it comes in the door to
when it leaves," he said. "There is no more confusion on
the shop floor. With set procedures in place, I can sleep at night,
knowing everyone is making parts according to written
specifications."

Small Companies Benefit From Standards

More than 400,000 companies worldwide hold some type of ISO
certification, according to industry experts. "We are seeing a
lot of smaller companies with enough confidence in their processes
to be certified and move to the front of the line to deal with
major customers," said John Glavey, regional Midwest
representative for DNV Certification, which registers companies.

Glavey and others involved in the certification arena said small
companies benefit financially by upgrading their manufacturing and
quality-control processes to meet the ISO standards. Why? Because
better quality products mean a company keeps its customers happy
and generates more business. "One of the first things our
clients ask is are we ISO-certified," said Mike Herot, quality
assurance manager for Da-Tech Corp. in Ivyland, Pennsylvania.
"We give them a copy of our certificate rather than filling
out the pages and pages of answers to questions."

Da-Tech, which has 100 employees, manufacturers printed circuit
boards used in medical devices, telecommunications equipment and
heater controls. The company received its initial certification in
1998. "You have to do an internal check-up every six months to
see if you are still in compliance," he explained. He said
Da-Tech hired Scalies to train three employees as internal
auditors.

"The internal audits prevent catastrophic errors you may
not notice without a system in place," said Herot, adding that
maintaining high standards requires top-down support.
"It's has to be an organization-wide effort and not just a
one- or two-man show."

Dana DeNinno, recruitment and career development administrator
for Tolas Healthcare Packaging in Feasterville, Pennsylvania, said
getting employees involved in improving quality is a great morale
booster and motivator. The company, which does contract
manufacturing for the medical device industry, has created a team
of 15 internal auditors drawn from different departments. "We
would lose a lot of business if we didn't have the ISO
certification," she said. "It's very important to our
company."

DeNinno cautioned that the certification process requires more
than just setting up quality manufacturing procedures and writing
reports. "You can't just set it up and walk away,"
said DeNinno. "You need to measure and evaluate your systems
frequently."

In the News
The SBA has extended the Physical Loss Disaster Loan application
deadline to March 11 from January 10, according to Rep. Nydia M.
Velazquez, ranking Democratic member of the House Small Business
Committee. "Small businesses, which we depend on for our
recovery and rejuvenation, are still hurting," said Velazquez.
"Many of them are just now discovering how badly they have
suffered over the past three months. It is important to keep these
resources open to them."

Velazquez said she hopes Congress will past a pending bill that
provides grants, no- to low-cost loans and loan forgiveness.
"These will be the expanded tools we can use to help small
businesses survive, thrive and lead us back to economic recovery
with more jobs and greater growth. I hope the whole House will act
on our bill quickly when it returns for the second session on
January 23."

Back on Track America

Entrepreneur magazine is proud to be a sponsor of
Jane Applegate's Back on Track
America, a coalition of small-business
experts--including our own Editorial Director Rieva Lesonsky--who
are embarking on a rail journey across the United States to bring
free guidance to the doorsteps of America's small businesses.
The effort is dedicated to revitalizing those small businesses
still reeling from the recession and the September 11 attacks.
Visit www.backontrackamerica.com or www.entrepreneur.com/backontrack for more
information and a schedule of upcoming events.